Swedish Automobiles Are the Best (SAAB) sells two types of vehicles: a truck and a car. The monthly inverse demand or price equation for trucks is estimated as P = 65 -0.05Q (where Qt is the number of trucks sold and Pt is the price per truck in thousands). For cars is: Pe = 55 - 0.1Qc. It costs SAAB $27 (thousand) to produce each additional truck and $21 (thousand) to produce each additional car, so MC₁ = 27 and MC = 21. Assume no fixed cost so TC = MC × Q. X Suppose now that SAAB's production capacity is limited to 400 vehicles per month. Determine the profit-maximizing quantities of trucks (Q) and cars (Qc) and the total profit for each vehicle type with the new optimal quantities caused by the constraint.

Q. Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR. Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers’ average household income, and PR is the average price of tennis rackets. The regression results are as follows: a. Discuss the statistical significance of the parameter estimates a^, b^, c^, and d^ using the p-values. Are the signs of b^, c^, and d^ consistent with the theory of demand? Wilpen plans to charge a wholesale price of $1.65 per can. The average price of a tennis racket is $110, and consumers’ average household income is $24,600. b. What is the estimated number of cans of tennis balls demanded? c) At the values of P, M, and Pr given, what are the estimated values of the price (E^), income…

A toy company is trying to determine the optimal price for their weekly supply to meet the demand for a toy they are about to release. They estimate that the supply function follows p= 0.006q^2 + 0.14q+ 8.62 and the demand function follows p= -1.25q+ 65 , where p is the price of the toy (in dollars) and q is the weekly quantity of the toy (in hundreds). If the company tries to sell the toy for $24, will there be a shortage or surplus of toys each week?

If the gasoline price remains low and the gas engine becomes more efficient for all kinds of models, what will be the possible impact on the U.S. market price of Tesla Model X?  Please explain your answer in the language of economics.